TRM Labs' new investigation reveals: $1 billion worth of transfers through a UK-registered cryptocurrency exchange identified

DYORMaster · 2026-01-28T19:15:40+00:00

A recent TRM Labs report reveals that the Iranian Revolutionary Guard Corps used UK-registered cryptocurrency exchanges to circumvent international sanctions, resulting in approximately $1 billion in funds being moved. The study highlights the need for stricter regulations to prevent misuse of such platforms.

DYORMaster

2026-01-28 19:15:40

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PANews reported on January 11th, citing a report from The Block, about new findings from the cryptocurrency analysis firm TRM Labs. The report revealed that since 2023, the Islamic Revolutionary Guard Corps (IRGC) has been deliberately circumventing international sanctions by utilizing multiple platforms of cryptocurrency exchanges registered in the UK. During this period, massive fund outflows were detected, amounting to approximately $1 billion.

IRGC’s Clever Evasion Strategies of International Sanctions

According to TRM Labs’ analysis, between 2023 and 2025, IRGC-related transactions accounted for a staggering 56% of the total trading volume on certain UK-registered exchanges. This remarkable high ratio strongly suggests that these exchanges may have been functioning as fund transfer platforms for IRGC. Traditionally, evading state-level sanctions required complex financial networks, but this case exposes how relatively simple infrastructure like cryptocurrency exchanges can be exploited for such purposes.

Why USDT and Tron Were Chosen: Blockchain-Based Concealment Mechanisms

In their transfers, IRGC selected specific combinations of cryptocurrencies and blockchain networks. Specifically, it was found that USDT, a stablecoin issued by Tether, was the primary means of transfer, with most transactions executed on the Tron blockchain. USDT’s high liquidity and widespread acceptance in the market make it difficult to trace. Additionally, Tron’s relatively low transaction fees and fast processing speeds made it suitable for large-scale fund movements. This combination allowed IRGC to conduct large cryptocurrency transfers while evading traditional financial tracking systems.

Zedcex and Zedxion: Registered Exchanges as Bases for Sanction Evasion

The two UK-registered exchanges identified by TRM Labs, Zedcex and Zedxion, formed the core of this transfer network. The flow of funds through these two platforms resulted in a total of about $1 billion, demonstrating how these exchanges provided the infrastructure to support large-scale fund movements. For international regulators, preventing the misuse of such registered exchanges will undoubtedly become a key challenge for future monitoring efforts.

Future Outlook and Challenges for International Regulations

The findings highlight how many loopholes exist within the cryptocurrency industry’s regulatory framework. Even registered exchanges, if lacking sufficient monitoring mechanisms, can be exploited for state-level sanctions evasion. Regulatory authorities and cryptocurrency exchanges worldwide must urgently strengthen customer verification (KYC) and suspicious transaction reporting (AML) systems. Continuous monitoring by chain analysis firms like TRM Labs will become an essential element of future sanctions enforcement regimes.

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